Brief Principles of Macroeconomics

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When the Mankiw text was first published, The Economist wrote, "Mr. Mankiw's book sets a new standard of clarity and liveliness." USA Today called it "a grand success." Since then, the book has been translated into more than a dozen languages and has been used at hundreds of schools to introduce economics to hundreds of thousands of students around the world. South-Western is now pleased to bring you this third edition. To help you in your study, South-Western has prepared a variety of student resources to accompany the book. These supplements test your understanding and provide you with opportunities for practice and research in economics. Book jacket.

Preface: To the Instructor

v

Preface: To the Student

xxii

PART 1 INTRODUCTION

1

(60)

Ten Principles of Economics

3

(16)

How People Make Decisions

4

(4)

Principle #1: People Face Tradeoffs

4

(1)

Principle #2: The Cost of Something Is What You Give Up to Get It

5

(1)

Principle #3: Rational People Think at the Margin

6

(1)

Principle #4: People Respond to Incentives

7

(1)

How People Interact

8

(3)

Principle #5: Trade Can Make Everyone Better Off

8

(1)

Principle #6: Markets Are Usually a Good Way to Organize Economic Activity

9

(1)

FYI: Adam Smith and the Invisible Hand

Principle #7: Governments Can Sometimes Improve Market Outcomes

10

(1)

How the Economy as a Whole Works

11

(4)

Principle #8: A Country's Standard of Living Depends on Its Ability to Produce Goods and Services